Illinois General Assembly - Full Text of HB0374
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Full Text of HB0374  98th General Assembly

HB0374eng 98TH GENERAL ASSEMBLY



 


 
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1    AN ACT concerning finance.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The State Finance Act is amended by adding
5Section 5.826 as follows:
 
6    (30 ILCS 105/5.826 new)
7    Sec. 5.826. The Human Services Provider Payment Fund.
 
8    Section 10. The General Obligation Bond Act is amended by
9changing Sections 2, 2.5 and 12 and by adding Section 7.6 as
10follows:
 
11    (30 ILCS 330/2)  (from Ch. 127, par. 652)
12    Sec. 2. Authorization for Bonds. The State of Illinois is
13authorized to issue, sell and provide for the retirement of
14General Obligation Bonds of the State of Illinois for the
15categories and specific purposes expressed in Sections 2
16through 8 of this Act, in the total amount of $49,592,925,743
17$47,092,925,743 $45,476,125,743.
18    The bonds authorized in this Section 2 and in Section 16 of
19this Act are herein called "Bonds".
20    Of the total amount of Bonds authorized in this Act, up to
21$2,200,000,000 in aggregate original principal amount may be

 

 

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1issued and sold in accordance with the Baccalaureate Savings
2Act in the form of General Obligation College Savings Bonds.
3    Of the total amount of Bonds authorized in this Act, up to
4$300,000,000 in aggregate original principal amount may be
5issued and sold in accordance with the Retirement Savings Act
6in the form of General Obligation Retirement Savings Bonds.
7    Of the total amount of Bonds authorized in this Act, the
8additional $10,000,000,000 authorized by Public Act 93-2, the
9$3,466,000,000 authorized by Public Act 96-43, and the
10$4,096,348,300 authorized by Public Act 96-1497 shall be used
11solely as provided in Section 7.2.
12    The issuance and sale of Bonds pursuant to the General
13Obligation Bond Act is an economical and efficient method of
14financing the long-term capital needs of the State. This Act
15will permit the issuance of a multi-purpose General Obligation
16Bond with uniform terms and features. This will not only lower
17the cost of registration but also reduce the overall cost of
18issuing debt by improving the marketability of Illinois General
19Obligation Bonds.
20(Source: P.A. 96-5, eff. 4-3-09; 96-36, eff. 7-13-09; 96-43,
21eff. 7-15-09; 96-885, eff. 3-11-10; 96-1000, eff. 7-2-10;
2296-1497, eff. 1-14-11; 96-1554, eff. 3-18-11; 97-333, eff.
238-12-11; 97-771, eff. 7-10-12; 97-813, eff. 7-13-12; revised
247-23-12.)
 
25    (30 ILCS 330/2.5)

 

 

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1    Sec. 2.5. Limitation on issuance of Bonds.
2    (a) Except as provided in subsection (b) and in Section
37.6, no Bonds may be issued if, after the issuance, in the next
4State fiscal year after the issuance of the Bonds, the amount
5of debt service (including principal, whether payable at
6maturity or pursuant to mandatory sinking fund installments,
7and interest) on all then-outstanding Bonds, other than Bonds
8authorized by Public Act 96-43 and other than Bonds authorized
9by this amendatory Act of the 96th General Assembly, would
10exceed 7% of the aggregate appropriations from the general
11funds (which consist of the General Revenue Fund, the Common
12School Fund, the General Revenue Common School Special Account
13Fund, and the Education Assistance Fund) and the Road Fund for
14the fiscal year immediately prior to the fiscal year of the
15issuance.
16    (b) If the Comptroller and Treasurer each consent in
17writing, Bonds may be issued even if the issuance does not
18comply with subsection (a).
19(Source: P.A. 96-43, eff. 7-15-09; 96-1497, eff. 1-14-11.)
 
20    (30 ILCS 330/7.6 new)
21    Sec. 7.6. Payments to bona fide creditors.
22    (a) The amount of $2,500,000,000 is authorized to be used
23for the purpose of making payments to bona fide creditors of
24the State who: (1) have submitted a bill or invoice to the
25State that was properly approved under rules adopted under

 

 

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1Section 3-3 of the State Prompt Payment Act or (2) are entitled
2to payment from State funds. For the purposes of this Section,
3the term "bona fide creditor" includes, but is not limited to,
4healthcare providers, human service providers, and any entity
5paid from a grant line by the Department of Healthcare and
6Family Services, the Department of Human Services, the
7Department of Children and Family Service, the Department of
8Public Health, or the Department on Aging. The proceeds of the
9additional $2,500,000,000 of bonds authorized by this
10amendatory Act of the 98th General Assembly shall not be used
11to pay contributions to any pension or retirement system of the
12State, any unit of local government or school district, or any
13agency or instrumentality thereof.
14    (b) The proceeds of the additional $2,500,000,000 of bonds
15authorized by this amendatory Act of the 98th General Assembly,
16less the amounts directly paid out for bond sale expenses under
17Section 8, shall be deposited into the Human Service Provider
18Payment Fund, a special fund created in the State Treasury.
19Moneys in the Human Service Provider Payment Fund shall be used
20to make payments to bona fide creditors of the State, as
21defined in subsection (a). Priority will be given to payments
22that receive Federal Medical Assistance Percentage (FMAP) up to
23$2,000,000,000 of the total amount authorized. The federal
24proceeds garnered from the payment of these bills shall be
25deposited directly into the General Obligation Bond Retirement
26and Interest Fund and used to pay the principal debt associated

 

 

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1with the bonds authorized under this Section. Funds remaining
2after payments are made that receive FMAP shall be prioritized
3according to the date on which the debt first became
4delinquent, with the oldest debts to be paid first.
5    (c) The Human Service Provider Payment Fund is not subject
6administrative charges or chargebacks, including, but not
7limited to, those authorized under Section 8h of the State
8Finance Act.
9    (d) Any federal proceeds received from FMAP for the payment
10of bills shall be deposited directly into the General
11Obligation Bond Retirement and Interest Fund. The Comptroller
12shall use these funds to pay the principal on the debt incurred
13under this Section no later than 30 days after FMAP proceeds
14are deposited into the General Obligation Bond Retirement and
15Interest Fund.
 
16    (30 ILCS 330/12)  (from Ch. 127, par. 662)
17    Sec. 12. Allocation of Proceeds from Sale of Bonds.
18    (a) Proceeds from the sale of Bonds, authorized by Section
193 of this Act, shall be deposited in the separate fund known as
20the Capital Development Fund.
21    (b) Proceeds from the sale of Bonds, authorized by
22paragraph (a) of Section 4 of this Act, shall be deposited in
23the separate fund known as the Transportation Bond, Series A
24Fund.
25    (c) Proceeds from the sale of Bonds, authorized by

 

 

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1paragraphs (b) and (c) of Section 4 of this Act, shall be
2deposited in the separate fund known as the Transportation
3Bond, Series B Fund.
4    (c-1) Proceeds from the sale of Bonds, authorized by
5paragraph (d) of Section 4 of this Act, shall be deposited into
6the Transportation Bond Series D Fund, which is hereby created.
7    (d) Proceeds from the sale of Bonds, authorized by Section
85 of this Act, shall be deposited in the separate fund known as
9the School Construction Fund.
10    (e) Proceeds from the sale of Bonds, authorized by Section
116 of this Act, shall be deposited in the separate fund known as
12the Anti-Pollution Fund.
13    (f) Proceeds from the sale of Bonds, authorized by Section
147 of this Act, shall be deposited in the separate fund known as
15the Coal Development Fund.
16    (f-2) Proceeds from the sale of Bonds, authorized by
17Section 7.2 of this Act, shall be deposited as set forth in
18Section 7.2.
19    (f-5) Proceeds from the sale of Bonds, authorized by
20Section 7.5 of this Act, shall be deposited as set forth in
21Section 7.5.
22    (f-6) Proceeds from the sale of Bonds authorized by Section
237.6 of this Act shall be deposited as set forth in Section 7.6.
24    (g) Proceeds from the sale of Bonds, authorized by Section
258 of this Act, shall be deposited in the Capital Development
26Fund.

 

 

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1    (h) Subsequent to the issuance of any Bonds for the
2purposes described in Sections 2 through 8 of this Act, the
3Governor and the Director of the Governor's Office of
4Management and Budget may provide for the reallocation of
5unspent proceeds of such Bonds to any other purposes authorized
6under said Sections of this Act, subject to the limitations on
7aggregate principal amounts contained therein. Upon any such
8reallocation, such unspent proceeds shall be transferred to the
9appropriate funds as determined by reference to paragraphs (a)
10through (g) of this Section.
11(Source: P.A. 96-36, eff. 7-13-09.)
 
12    Section 99. Effective date. This Act takes effect upon
13becoming law.